Ledger Nano Ebay Scam
4 min read

Are Fraudulent Ledger Hardware Wallets Being Sold on Ebay?

By Editorial Team

Many cryptocurrency users know of the benefits of cold storage on a hardware wallet. They know that this is one of the most convenient ways in order to store your coins in an offline environment.

However, when you are purchasing your hardware wallet, it is highly recommend that you only buy it from the official retailer itself. As with anything in life, if you cut corners on price you run the risk of a scam.

This is exactly what happened to an unfortunate cryptocurrency user who had purchased his ledger Nano S from an Ebay seller. The listing was at a 25% discount from the official price so he thought that he was getting a bargain.

Unfortunately for the buyer, when the Ledger Nano arrived, there was something amiss. Being new to the concept of seed words the buyer did not notice the potentially lethal flaw.

Use of Pre-generated seed

Recovery Seed Ledger Scam
The Fraudulent Seed Card – Image Source

When the ledger arrived, it appeared to be in order as it came sealed in the Ledger Nano box. However, when the user opened the box he saw that the device was ready to use and there was a seed word card that was covered with tin foil.

Users who have ever generated a wallet from seed words before will know that the wallet itself will generate the seed words. These will be saved by the user for potential recovery later. Hence, this would immediately have set alarm bells ringing.

Unfortunately for the user, he did not notice this and entered his ledger with the pre-generated seed. He then proceeded to transfer about £25,000 worth of coins onto his ledger. This was left for over a week as he thought that his coins were safe.

Scammer Swept in

What the user did not know was that the wallet had already been set up by the scammer with those seed words. Hence, the scammer could just as easily use the recovery seed to gain control of the wallet. This is exactly what happened.

Moreover, they tricked the user by placing the seed words under the foil. This created the illusion of security that the user thought there may have been with his cryptocurrency holdings.

When the victim went back to look at the gains that he had on the coins, he discovered that they were gone. He reached out to the Ledger support team on their subreddit.

Many were really sympathetic to the plight of the victim with the CEO of Ledger even responding to the post with a suggested course of action.

We’ll put you in touch with our General Counsel so we can help you file a formal criminal complaint and bring the eBay seller to justice

Unfortunately, there is very little the victim could realistically do to recover the coins as all transaction are immutable. However, as was suggested by many in the comments, he could take note of the seller’s information and hand it over to the police.

The only hope is that Ebay is able to provide the authorities with enough information about the account in order for them to follow reasonable leads. Barring that, the user may want to set up bounty and see if there are some white hat hackers willing to help.

Indeed, after the victim made his experience known, a number of other users came forward on Reddit forums as they found the instructions for the wallet suspicious. For example, this user also reached out asking whether there was something that was wrong with his ledger.

Lessons to be Learned

One of the most important lessons that one can learn from this sad occurrence is that you should rarely trust a third party sellers on marketplaces such as Amazon and Ebay with cryptocurrency security. This is particularly true when the price of hardware is at such as discount.

Moreover, if you are new to cryptocurrencies and are setting up your device for the first time then you should read the official guidelines that are presented on the manufacturer’s website. If there is something that feels amiss, you should make sure it is not malicious.

One can only hope that the victim is able to get some justice for his loss, but hopefully his experience will help others avoid this trap.

Featured Image via Fotolia

Editors at large. Posting the latest news, reviews and analysis to hit the blockchain.
View all posts by Editorial Team -> Best Crypto Deals ->

Latest Posts

Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 18, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
Raydium Review: Solana’s DeFi Liquidity Mammoth

Raydium Review: Solana’s DeFi Liquidity Mammoth

June 11, 2022 17 min read
crypto com
Crypto.com Exchange Review 2022: A World-Class Crypto Exchange
crypto com

Crypto.com Exchange Review 2022: A World-Class Crypto Exchange

June 10, 2022 30 min read
OKX invests in WAX
OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX
OKX invests in WAX

OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX

June 3, 2022 2 min read
Binance partners with the weekend
Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour
Binance partners with the weekend

Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour

June 3, 2022 2 min read

Related Posts

OKX invests in WAX
OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX
OKX invests in WAX

OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX

June 3, 2022 2 min read
21Shares Releases Sixth State of Crypto Report
21Shares Releases Sixth State of Crypto Report: Summary
21Shares Releases Sixth State of Crypto Report

21Shares Releases Sixth State of Crypto Report: Summary

June 2, 2022 3 min read
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

June 2, 2022 2 min read
Regulators are “Not Allowing” Banks to Engage with Crypto
Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto
Regulators are “Not Allowing” Banks to Engage with Crypto

Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto

June 1, 2022 2 min read
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution

US Conference of Mayors Introduces Blockchain Resolution

June 1, 2022 2 min read
Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40Increase
Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40% Increase
Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40Increase

Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40% Increase

May 31, 2022 3 min read
All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours
All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours
All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours

All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours

May 31, 2022 2 min read